Public Relations Impact on Organization


The image of the organization is what attract job applicants; they are often attracted to companies that portray good public image. Organizations that enjoy good reputation have the ability to pull high quality applicants. Most of the employees are even willing to take low wages just for the sake of being identified with organizations that have strong public reputations. The image’s ability to attract quality and experienced personnel leads to more positive consequences hence improvement on the organization’s profitability (Horton, 2005, pp 1-8).

The consumer’s decision on what services and products to go for is mainly influenced by the brand of the company. Consumers sometimes are forced and willing to buy products from organizations with poor brand name only when the prices are low, conversely they tend to reward good image by paying high prices for their products (Cherenson, 2002).

The brand name is further enhanced by the organization’s ability to provide the society with wide range of products they expect at affordable prices. The manner in which the organization treats employees and how it conducts its business publicly have the ability of differentiating its brand from other related organizations within the same market set-up, hence builds the consumers loyalty towards it. Precise and clear definition of organizations image usually communicates and creates renewed belief and confidence within the consumer. This is a good determinant of the organizations success.

Market Landscape

There is a relationship between the organization’s reputation and the financial performance. The organizations stock market performance and secure prices will be core factor in determining the market percentage it commands. The extent to which a company gains market share improves its profitability depending on the workable strategies it employs. Usually the cost of buying high market share may be above the expected returns, however high shares will automatically bring higher profits especially in cases where the costs of goods are low within a big market share. The organization should be actively involved in market actions that require detection and quick response towards market changes like pricing methods, customer product preferences and technology. These actions lead to high financial performance (Kotler et al, 2001).

A company can hold a small market share but realise huge profits because of the high shares it holds within the market. This can be attributed to quality products or services offered that wins the consumers’ confidence and also holding down the costs. Public relations can be used to help in expansion of the market through discovering and promoting the new uses of the products and further persuading the consumers to use more of the product for their personal benefits. For example, P&G Company encourages consumers to apply the head and shoulders shampoo twice instead of once per wash for effective results to be realised. This has since encouraged consumers to buy more of the shampoo hence increasing its market share and sales (Kotler et al, 2001).


Any organization that wishes to have market success or high profitability must be prepared to win in the market place. The company must use well its public relations tools to gain the competitive advantage. This can only happen when it offers and advertises well either services or goods that other competitors do not offer. It may use its instruments to cover the special needs of certain market segments that are ignored by others. To win the public the company have to prepare to offer best prices for quality goods or unique qualities that make the consumers willing to pay higher prices. Tough competitive environment may lead to breaching of some rules rendering public relations to be of less importance (Horton, 2005, pp 1-8).

Competitor’s strength and weaknesses can always be assessed by analysing what the customers’ value in the market. This is done by asking the customers the benefits they value and the important attributes they use to grade the company to other competitors within the industry. These relations help the organization to identify the areas that looks vulnerable that other competitors can easily utilize to topple them. The presence of competitors can at times result in more benefits by helping in improving the total demand. In industries where competitors relate in harmony, there is sharing of market cost, improvement of products and easy introduction of new technologies (Kotler et al, 2001).

Socio-Cultural Environment

The reputation of an organization is one of the factors that determine the level of company’s interaction with the local communities. The organization’s ability to grow is dependent on the support it gets from the community in terms of labour standards, respect to cultural beliefs including land use and other key reputations. Public relations act as a link which enables both the business and the people to effectively adapt to each other. This will enable a company to easily analyze the issues that might impact the society positively or negatively, hence adjust its services and products to suit public interest making satisfaction of customer interest the primary goal (Horton, 2005, pp 1-8).

Business organization can simply loose societal approval when it experiences trouble with the labour force, or its lack of popularity in its own backyard environment. It also loses reputation by not adhering to government’s policies and regulations. This can be very detrimental since it affects the market success of the organization. This shows that good reputation and public relations must precede good and quality production or services. Corporate social performance impacts organization’s profit levels by influencing its reputations. This acts as a direct influence on the company’s competitive advantage and ability to attract and retain experienced and talented employees (Horton, 2005, pp 1-8).


The media offers a point of contact between the consumers and the organizations in that it allows for advertisement of new products in the market, the pricing and the general organizations performance. This puts the organization at the position where it can attract consumers; negotiate prices to the benefit of the industry. The creation of awareness through the media expands the customer base and helps in increasing the sales. It helps in completion of most economic transactions by revealing the type of good or services its qualities and price (Horton, 2005, pp 1-8).

The missing of crucial information is what sometimes leads to the act of consumers despising the product or service being offered. This can well be articulated through the media i.e. Television, radio or newspapers (Horton, 2005, pp 1-8). Advertisement and promotion are some of the tools that companies spend heavily on since they are likely to woe consumers and win their confidence. Any business organization that plans to operate for fairly long time must enhance the management’s relationship and reputation.

Political Environment

Public relation enables the free flow of information that enables an organization to make informed decisions. This aid in building trust between the company, the government and the people, it also enhances the company’s credibility. However, there are times when journalist commentators are paid to promote political issues between rival companies. Earlier reporters and editors could be paid large sum of money by companies to write in favour of their products and services. This promoted a lot of harm on other organizations who though having good reputation and quality services or products, are unable to penetrate market due to suppression and intimidation. This causes reduction in consumer trust hence loss of sales, market share and ultimately profit.


Public relations have a great impact on organization’s performance since it dictates on the level of its corporate reputation. Sound financial position of an organization and its profitability is determined by its ability respond positively to the community and the environment. It is also determined by the ability of the company to attract both consumers and talented employees. However, there is a possibility that those in the management team can act in a manner that reduces the company’s corporate reputation.

The management qualities as well as the quality of goods and services remain an important factor that determines the length of time an organization can last within the market. All the drivers of financial excellence in an organization are basically linked to the extent on which the company utilizes its tools on public relations; this applies on both social and environmental sectors.


Cherenson (2002). Cash Doesn’t Carry Corporate Reputation for Potential Employees. Public Relations Strategist. Vol. 8, Iss. 2.

Horton, J. L. (2005). Public Relations and the Profit motive. Financial Times, Prentice Hall.

Kotler, P. Armstrong, G., Saunders, J., and Wong, V. (2001). Principles of Marketing. Web.

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